Zynga Inc. develops, markets, and operates online social games as live services played on the Internet, social networking sites, and mobile platforms in the United States, Asia, and Europe. The company was founded in 2007 and is based in San Francisco, California.
ZNGA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Zynga Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Zynga Inc ranked in the 99th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 39110%; returns of such proportions should be viewed with some skepticism, though. As for the metrics that stood out in our discounted cash flow analysis of Zynga Inc, consider:
Its compound free cash flow growth rate, as measured over the past 4.01 years, is 2.51% -- higher than 96.35% of stocks in our DCF forecasting set.
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately merely 19.82% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
As a business, Zynga Inc experienced a tax rate of about 50% over the past twelve months; relative to its sector (Technology), this tax rate is higher than 92.78% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Mobile game company Zynga Inc. (NASDAQ: ZNGA) has seen its stock gain 49% since the beginning of this year. The company registered strong results in the first half of 2020 benefiting from the COVID-19 pandemic-related restrictions and lockdowns that led to user growth and higher engagement. Strong first half During the health crisis, more people […]
Summary List Placement FarmVille is shutting down on Facebook by the end of the year, Zynga announced Monday. The company said the move is due to Adobe's decision to stop distributing and updating its Flash Player software. Facebook announced in June that it in turn would officially end support for Flash games on December 31, at which point FarmVille users will no longer be able to play the game. "We're aware that many of you have been with us since the very beginning, helping to build an incredible global community of players over the years who've enjoyed this game just as much as we have," Zynga said in a blog post. "For that we say thank you." Players will be able to make in-app purchases until November 17, per the company. After that date, the game's payment system will be deactivat...
Mobile gaming was in the VC spotlight last week, led by the $100M Series A raise by potential Zynga (ZNGA) competitor Playco, which came out of stealth with a $1B valuation in a round led by Josh Buckley (Mino Games founder and tech investor) and Sequoia Capital Global Equities. Playco,...